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A Guidebook of
Project & Program Management
for
Enterprise Innovation

Summary Translation

November 2001
Revision 1. August 2002



Project Management Professionals Certification Center
(PMCC)


P2
M




PREFACE

This brochure is an interim summary English version of “A Guidebook for
Project and Program Management for Enterprise Innovation” or abbreviated as
P2M. This interim summary version is issued by Project Management
Professionals Certification Center (PMCC) of Japan, and is intended to provide
readers with an overview of the innovative program and project management
guide.

PMCC is the non profit organization, responsible for promotion of the project
management and it’s Certification System for Project Professionals into wide
varieties of industries in Japan, and also responsible for maintaining and

upgrading of P2M

P2M is originally a 420-page Japanese document, for enterprise innovation by
way of program and project management, which hopefully will serve as a
gyrocompass for enterprise growth and survival in this globally competitive
business and public services environment and will supplement each other with
the existing international project management bodies of knowledge and project
management competency standards.

P2M has been developed by the Engineering Advancement Association’s
(ENAA) Committee for Innovative Project Management Development
Committee, a team of selected visionaries and practitioners of project
management and program based business management drawn from project
industries, academia and consulting disciplines, over the past 30 months as of
November 2001 on the belief that reflecting the ongoing highly challenging
Japanese economic situation, setting aside its prosperity in the 70’s and 80’s, the
nation needs a zero-based Program and Project Management paradigm to give a
second thought to mere dependence on the delivery-focused traditional project
management models and to develop a guide to allow the integration of project
business strategy elements and utilization of valuable knowledge created
through projects and programs and subsequent projectized management of
operation and maintenance of projects into the traditional project management
dimensions.

The key word throughout P2M is value creation to enterprises, either
commercial or public, and a consistent chain from a mission, through
strategies to embody the mission, a program(s) to implement strategies, to
projects comprising a program.

P2M should not only benefit Japanese organizations but would profitably

apply to any organizations globally who seek an all-in one package that offers a


comprehensive guide to program and project management while the brochure is
a little bulky compared with the existing project management guides but does
not require readers to hop around a variety of referenced documents.

This English summary version covers the total of Parts 1, 2 and 3 of P2M that
provide a holistic, unique structure of program and project management and an
overview of Part 4 which offers eleven project segment management areas.

All rights are reserved to Project Management Professionals Certification
Center (PMCC) of Japan



CONTENTS

Introduction - "P2M" A guidebook of Project and Program Management 1
Part I. Project Management Entry 4
Chapter 1 Prject Management and Mission-Achieving Professionals 4
Chapter 2 Unique Design and Structure of P2M 11
Chapter 3 Strategic Use of P2M-based Project Management 14
Chapter 4 Project Management Tower - P2M Tower 17
Part II. Project Management 19
Chapter 1 The Project 19
Chapter 2. Attributes of Projects 20
Chapter 3. Definition of Project Management 21
Chapter 4. Project Management Capability Framework 22
Chapter 5. Project Management Common View 23

Chapter 6. Project Management Skills 27
Part III. Program Management 32
Chapter 1. The Program 32
Chapter 2. Strategic Nature of Programs in the Contemporary Society 35
Chapter 3. Concept of Program Integration 36
Chapter 4. Program Management 40
Chapter 5. Program Platform 43
Chapter 6. Integration Management 48
Part IV. Project Segment Management 79
Chapter 1. Project Strategy Management 79
Chapter 2. Project Finance Management 81
Chapter 3. Project Systems Management 83
Chapter 4. Project Organization Management 84
Chapter 5. Project Objectives Management 85
Chapter 6. Project Resources Management 88
Chapter 7 Project Risk Management 89
Chapter 8. Project Information Technology Management 90
Chapter 9. Project Relationships Management 91
Chapter10. Project Value Management 92
Chapter11. Project Communications Management 94



Introduction Page 1
Introduction - "P2M" – A guidebook of Project and Program Management

This guidebook, "P2M", is provided for corporate strategic managers, program managers and project
management practitioners, either on managerial, intermediate or on entrant levels, educators/trainers and
students seeking a career edge in the emerging management by projects era, and is intended for modular
uses depending on the respective readers’ levels of maturity or exposure to project management or their

positions in relation to strategic levels of project and program management deployment, viz., from the
highly strategic deployment of program management, through the secure delivery management of discrete
projects , to elementary or trial use of project management knowledge. "P2M" is the abbreviation of the
"A Guidebook of Project and Program Management for Enterprise Innovation.

P2M has been developed by the ENAA Committee for Innovative Project Management Development
Committee, a team of selected visionaries and practitioners of project management and program based
business management drawn from project industries, academia and consulting disciplines, over the past 30
months as of November 2001 on the belief that reflecting the ongoing highly challenging Japanese
economic situation, setting aside its prosperity in the 70’s and 80’s, the nation needs a zero-based Program
and Project Management paradigm to give a second thought to mere dependence on the delivery-focused
traditional project management models and to develop a guide to allow the integration of project business
strategy elements and utilization of valuable knowledge created through projects and programs and
subsequent projectized management of operation and maintenance of projects into the traditional project
management dimensions.

In the current society, a variety of professionals such as lawyers, licensed engineers and CPAs provide
services in their own professional disciplines in more or less vertically walled spheres. While this
professional system offers in-depth specialization in the respective disciplines, given the ongoing
circumstances in which the world constantly poses, either in the public systems or in business, complex
challenges requiring totally optimized solutions, the society is increasingly in demand for professionals
capable of competently solving complex issues, problems and tasks, collectively referred to as missions, by
cutting across related disciplines and combing the expertise and wisdom of each and applying a holistic
trade-off and integration capability. Particularly, in the knowledge and information society where hybrid
deployment of a variety of natural and human science disciplines, translated into technology and
engineering, as well as art outputs, is a way of life, such mission-achiever type professionals are expanding
their horizon to prove their value. It is not an exaggeration to claim that the performance of a society is
dependent of the availability and quality of such professionals. Any society or enterprise should seriously
recognize the knowledge, expertise and attitudes of program and project management professionals. P2M
has been in place to fulfill this social demand.

P2M is also the basis of Japan’s new certification system for project and program managers. Those
professionals to be qualified through the certification are classified into the following three categories, from
the lowest to the highest, according to their levels of positional missions, responsibilities and experience:
Project Management Specialist (PMS), Project Manager Registered (PMR), and Project Management
Architect (PMA).

In P2M, Section 1, Project Management Entry, describes the relation between the modern society and
professionals, requirements for mission-performer professionals, the history of project management and its
application in the modern society, as well as offers a general guide to use this brochure.

In Section 2, Project Management, the Definition and basic framework of a project and project
management are given, focusing on a common view of project management and the relation between
integration management and segment management elements.

Section 3, Program Management, discusses the Definition and basic framework of program management.
Program management consists of an intrinsic common view for the integration of projects under a program
and characteristics of program management aiming for optimization of programs.

Section 4, Project Management Segments gives eleven discrete elements, or also called areas of project
management, which are the backbone of project and program management. These elements are woven
into project and program management being combined in the totality or in several of them depending on the

Introduction Page 2
phase of project or program management but always within the mission context of a specific project or
program management.

Although P2M is considerably more extensive than the existing PM BoKs or PM competency standards,
it does not try to explore every detail of the topics discussed. Project and program management practice
capability should be expanded not only with the professional experience but also with the development of

related disciplines of science and technology; mission-performer professionals are expected to commit
themselves to continuing education in the disciplines and related areas.

Ÿ P2M is a guide to enable mission-performer professionals to acquire a unique knowledge system of
program and project management.
Ÿ P2M is intended to serve as the fundamental referendum to qualify mission-performer professionals.

Ÿ P2M consists of four sections: Project Entry, Project Management, Program Management and
Project Segment Management.
Ÿ P2M defines essential technical terms.

Part 1 Page 3
Part I. Project Management Entry
Chapter 1 Project Management and Mission-performer Professionals
l Roles of Responsibility of Mission-performer Professionals (Project Professionals)
Hereafter, mission-performer professionals are referred to as “project professionals”. Project
management entry is an introductory anatomy of project management for project professionals. Project
professionals handle complex issues requiring optimum solutions for a society or an organization(s).
They therefore possess capability, attitudes and qualities that integrate knowledge and expertise of multiple
disciplines, exercising functional authority to cut across the disciplines involved in a program or project
from a total optimization viewpoint. Broader views, a systematic body of knowledge and affinity with a
range of related emerging technologies and techniques are indispensable ingredients. P2M sets forth the
minimum baseline of project management, program management and eleven segments of project
management.
As projects affect, to a varying degree, not only sponsor organizations but also the society, project
professionals are required to maintain high morale, ethics and commitment to contributing to the welfare of
human beings and the society through due diligence of their services. Such accountability to the
profession and to the society required of project professionals cannot be achieved without building
competent capability. P2M is a guide that describes the knowledge and experience that professionals
should master in practical contexts.

P2M, as a hybrid product of professional practice and practically applied science, delineates its contents
as recommended practices based on management science, systems science, information science, and human
science of which effectiveness and validity are recognized by business, public sectors and society in general.
To develop competent capability, it is indispensable for project professionals to meet the three factors:
systematic knowledge, practical experience, and attitude/qualities that include professional ethics. In
addition, project professionals are required to continuingly enhance competence through learning and
practice. P2M aims at presenting a "capability building baseline (CBB)."

Ÿ Mission-performer professionals are integration-oriented professionals who perceive complex
problems and issues from a high perspective and realize right and optimal solutions.
Ÿ Mission-performer professionals are required to acquire a body of knowledge that provides a
broad perspective.
Ÿ To develop professional capability of mission-performer professionals, three factors are
necessary: a body of knowledge, practical experience, and attitude/qualities.
Ÿ Mission-performer professionals should fulfill their responsibility through continuing efforts to
improve themselves through learning and practice.
Ÿ P2M is described in an intelligent manner based on proven knowledge and experience.
Ÿ P2M aims at providing the Capability Building Baseline (CBB).


Ability to practice
(Capability)
Systematic knowledge (Knowledge)
Attitude, qualities, ethics (Attitude)
Capability Building Baseline
(CBB)
Accountability
Continuing learning and practice
(Development)
Practical experience (Competence)

Figure 1-1: Three Factors for Responsibility and Capability Development of Professionals

Part 1 Page 4

Case u Broad Vision and High Viewpoint
Technological development for global environmental preservation is a typical case of a
complex issue.
Policy planners should recognize the issue with a broad vision, taking into account ecosystems,
preservation technology, social agreements, legal frameworks and economic effects, and should launch a
project with an effective policy plan from a higher viewpoint, which is acceptable to the society, industry
and local community affected.
In addition, policy planners cannot fulfill their accountability as professionals without a confident attitude
and ethics to achieve sustainable growth, e.g., never to generate waste as byproduct of the policy that places
priority on economy.
l Value Creation by Project Professionals
Project professionals should contribute to value creation. The value of project professionals lies in
giving satisfaction to sponsors. The degree of satisfaction depends on a balance between the benefits that
a sponsor enjoys and costs expended to realize the benefits.
Lawyers offer services and create values for clients through legal consultation and lawsuits defense.
Project professionals should likewise satisfy sponsors by offering highly professional services for projects
including their conception, planning, implementation and management, and by enhancing efficiency.
Efficiency means the productivity to utilize resources without waste, unreasonableness and inconsistency.
What is stressed in the activities of project professionals is the solution of complex issues that are hard to
be tackled independently by professionals in individual disciplines if without integration by project
professionals. Complex issues are difficult to grasp in the core as a multitude of areas are interwoven into
the issues. Solutions to these issues could only be created and implemented with close collaboration
among experts in the respective related areas. Complex issues are characterized by the paring of complex
Definitions of issues and their solutions. This leads to the point that the value of project professionals
depends on their competent capability to effectively solve complex issues. The effectiveness can be

measured by comparing the costs incurred for solution(s) with the level of benefit realized; such benefit
should not be realized in parts but in totality meeting the core mission of the issue. The broad scope of
effectiveness means not only enhancement of satisfaction by clients but also coordinated balancing of
interests for a wide range of parties from those concerned with the project to the society that is potentially
affected by the project. This means that projects should not only meet the objectives and expectations of
direct sponsors but should also be compatible with those of other stakeholders and, in the overall analysis,
with the society affected by the project. A questions raised is ”Are the project and its management
acceptable to the society as a project with right management would enhance and have enhanced the value
of the society?”
P2M targets project management professionals who are capable of providing sponsors with quality
satisfaction by solving overall, not partial, issues. In solving overall issues, attention should be paid not
only to segments but also to their interrelation, mutual influence, synergy, etc.

Ÿ Project professionals should offer high quality professional services and contribute to value
creation with efficiency.
Ÿ Project professionals should focus on solution of complex issues and demonstrate the
effectiveness of solutions.
Ÿ Project professionals should perform value creation activities to enhance project acceptability
by coordinating interests of a broad range of relevant parties.

Expert professionals Expert service Problem solution Realization of satisfaction
Project management Complex issues Efficiency, effectiveness, and
acceptability
Value

Figure 1-2: Value Creation by Expert Professionals

Part 1 Page 5

Case u Roles of Project Management Professionals

When a company needs a sales information system, neither system engineers nor marketing experts can
handle the case alone. An expert in the planning section would be lost at how to plan and implement an
inexperienced system. Accordingly, an expert team consisting of planning staff, marketing persons and
system analysts has to be formulated under the functional direction of a project manager. Then a project
manager confirms an investment budget, expected results and delivery timeline with the sponsor
executive.
Based on the executive charter, he/she would have sales experts study ways to improve the repeated order
ratio and order volume increase, and have the information technology section design the information
system to support such marketing initiative. The project manger solves complex issues in the project by
profiling the intent of the sponsor executive, namely, by clarifying the mission of the proposed project, its
objectives and goals, asking a question "Why do we develop a sales information system?” A solution is
worked out by effectively combining technical expertise of planning staff, marketing experts and systems
analysts. The project manager is a new type of professional who offers such expert capability.

Case u Systematic Knowledge
For instance, in the consultation for an improvement of poor product sales, marketing experts would often
address the issue on their own expertise. However, project management would solve the issue in a project
way by setting a due time for solution and approaching the task as a complex issue of supply chain,
involving customer information data, speed and service. In this case, the systematic knowledge of project
management is required.

Ÿ Project professionals refer to professionals who provide customers with satisfaction by solving
complex issues.
Ÿ Project professionals refer to professionals who can define sponsors’ ambiguous yet profound
requirements as a concrete project and lead the project to value creation.
Ÿ Project professionals refer to professionals who approach complex issues from relationship
context.
Ÿ Project professionals refer to professionals who handle complicated and uncertain
relationships.
l Development of Project Management

Project management has been studied and practiced since the 1940's: it was initially deployed by the U.S.
Department of Defense in the military systems and space development fields. The Project Management
Institute (PMI

) in the U.S.A. published its prototype body of knowledge of project management for the
first time and pioneered the certification of project management professionals. PMI

issued "Project
Management Body of Knowledge (PMBOK)" in 1987 and revised it to "A Guide to the Project
Management Body of Knowledge (PMBOK Guide) " in 1996, which has been updated to the 2000
Edition.
The number of PMI

members was only 12,000 in 1994 but reached 80,000 in 2001. PMI

started the
certification of “Project Management Professionals (PMP

) in 1984. The PMP

certification system until
early 1997 was rigorous mainly targeting North American project mangers, calling for a triangle set of
candidates’ academic qualifications, professional experience record and proof of dedication to the project
management profession mainly in terms of membership and professional activities with PMI

or PMI

designated project management associations, before PMP

candidates can sit for examinations on project

management knowledge. In line with the globalization of the project management profession and PMI

members, PMI

reengineered the certification system in 1997 along the guideline of the U.S.
accreditation body, and a new certification system was put in place in 1998 which is providing a more
ample opportunity for PMP

certification to not only North American but global project management
practitioners by providing computerized knowledge examination in nine languages.
For some years after the foundation of PMI

in 1969, its members were mainly from the engineering and
construction industry as well as defense industry but now the PMI

membership mix has shown a drastic
change: members from IT/information management/information movement, financial and services industry
are reported to account for some 75%.
In Europe, the International Project Management Association was established in 1967 with
“INTERNET” being its common name, as an international umbrella project management association to
which national associations belong. In 1997 the name INTERNET was dropped due to the furious
spreading of Internet, and it was decided to revert to the abbreviation of its original name, IPMA. IPMA

Part 1 Page 6
includes 29 national associations in Europe and Egypt, India and China with combined worldwide members
of some 20,000. The United Kingdom, France, Germany and Switzerland, which are leading members of
IPMA, announced the IPMA Competence Baseline (ICB) in 1993, and the ICB has been developed into
various National Competence Baselines (NCB), or guidelines for standard project management competency
baselines reflecting each member country's project management development status and national cultures
and practices. The professional certification system based on both bodies of knowledge and NCBs was

started in 1997. There are four ranks of qualification certificates (from the lowest to the highest) : Project
Management Practitioner based on certification of knowledge; Project Management Professional; Certified
Project Manager; and Certified Program or Projects Director the last three based on the certification of
knowledge, proven capability and attitude.
The National Competency Standard for Project Management (NCSPM) of the Australia, endorsed by the
Australian Institute of Project Management (AIPM) defines the standards on specific competency criteria
for project managers by adopting the framework of nine knowledge areas of PMBOK Guide but
designing very specific skills and competency items for the respective knowledge areas. Its certification
system is unique and is based on work-place assessment by registered assessors by industry affiliation.
The NCSPM has three certification levels (from the lowest to the highest): Qualified Project Practitioner
(QPP), Registered Project Manager (RPM) and Master Project Director (MPD). These three levels
correspond to levels 4, 5 and 6, respectively, of the Australian Qualification Framework (AQF) sponsored
by the government, which is the generic standard for professional performance capability in Australia.

Part 1 Page 7
Project management was introduced in Japan first into the engineering and construction industry in the
early 60’s for building modern oil refineries and petrochemical plants based on American process
(production) technologies to cater to the Japanese industry in full swing to attain post-World War II
recovery. As the production technology was from the US, project management was imported in parallel.
Project management was then implanted into the general construction, heavy industry and heavy electricals
companies. Lately since around 1995, thanks to the IT revolution, project management has been attracting
more interest in the fields of information systems/solutions industry, manufacturing industry, as well as in
business process reengineering and restructuring endeavors and financial circles.
In Japan, a dedicated project management department was inaugurated in the Chiba Institute of
Technology in 1997, and the Japan Project Management Forum (JPMF) was founded in 1998 as a
community for cross-industry networking and cross-fertilization for project management professionals,
practitioners, educations and vendors. JPMF, in cooperation with ENAA, hosted Japan’s first global
project management conference “International Project Management Congress 2001 (IPMC2001)” in
November 2001 with 460 delegates from 23 countries; P2M was announced to the world from the platform
of IPMC2001.

In 1997, the first PMI

PMP

examination was administered in Japan by pioneering Japanese PMI

members; the number of PMPs

in Japan jumped from just seven under the old system in 1996 to current
2,000. Also, the Society of Project Management (SPM) was established in 1999 as a unique academic
project management society that is the hub of scientific research and development of project management;
SPM’s membership is not confined to Japanese but is open to the world. SPM will host its first global
symposium in Singapore in July of 2002.
With the advent of ever-increasing pursuit of project management, in 1999, the Ministry of Economy,
Trade and Industry (METI) proposed that the Japanese experience, knowledge and wisdom on project and
program management embedded in the Japanese industry be intelligently collected and translated into a
unified body and practical guide for the revitalization and competitiveness enhancement of the Japanese
industry and subsequent managerial technology transfer to other interested counties and commissioned the
realization of this vision to the Engineering Advancement Association (ENAA), a non-profit project
industry initiative. Upon this valuable vision and research budget, ENAA formed the Committee for
Innovative Project Management Model Development which has been headed by Professor Shigenobu
Ohara of Chiba Institute of Technology and staffed with industry’s leading project management visionaries,
knowledgeable academia, management consultants with project business background, and business
strategists. The committee, after three years of continuing research and development activities in a project
way, has given birth to this P2M.

Ÿ Project management (PM), rooted in the defense and engineering/construction industry, is
finding dramatically expanding application areas since the middle of 1990’s and is now one of
the most widely acknowledged business management systems.
Ÿ PMI


, a global PM association headquartered in the U.S.A., maintains its proprietary PMBOK


Guide as a PM body of knowledge and IPMA, dominant in Europe, maintains ICB as a
competency standards brochure.
Ÿ PMI

confers PMP

certificates to those who passed both career verification and a knowledge
examination; PMP

examinations are administered in Japan as well.
Ÿ IPMA grants four levels of qualifications for project professionals based on knowledge and
proven capability.
Ÿ AIPM in Australian grants three levels of project management certification based on
work-place project management competency.

A brief analysis of P2M’s features is given.
Project management practices, generation by generation, have contributed significantly to the efficient
development and execution of social infrastructures, capital investments and lately business process
improvement.
The project management in the first generation focused on the management of the eternal triangle of
Q-T-C or quality, time and costs plus later scope management. Project management, in this category, is
project implementation or delivery focused, and because of its basic structure of defining the scope via
WBS, i.e., decide and allocate resources to be utilized for each work package and
plan-execute-monitor/control-feedback cycle, project management sets standards for how to most
efficiently accomplish given unique tasks, meeting a given or set cycle time.
Project management of the second generation is often referred to as modern project management (MPM)

and combines the features of the project management of the first generation, which may be classified as

Part 1 Page 8
hard processes of project management as it is rich in planning and control processes, and soft processes
such as organization and communications management, in addition to reinforcing the hard processes such
as scope, time, cost, risk and procurement management. In short, modern project management takes on a
balanced process structure for wider applicability and envisions use for organizational competitiveness
projects in addition to meeting external sponsor requirements such as capital investment and systems
development. As a result, project management has dramatically expanded its application areas: it is being
applied to national policies development and agency productivity enhancement, IT/information services,
and product and services development using the F-B-C (faster-better-cheaper) concept.
While P2M should still go through evolution, P2M targets opening up the third generation. What is
needed now in Japan are the restructuring of the total systems from a holistic viewpoint, whether company
business structures, public works and public services that cannot adapt to changes in environment. The
concept needed for breakthrough is not analytical ability, but broad visions, value consciousness, high
viewpoint and rich insights that enable one to grasp the totality and foresee the future. The philosophy of
project management embodied in P2M lies in deciphering complex issues, developing or interpreting
missions for breakthroughs, and paving roads to optimal solutions through programs, which in turn consist
of organically interrelated projects.
In other words, P2M expands the existing project management bodies of knowledge or competency
standards to the total management of projects, or cradle to grave of projects, viz., from program conception
for value creation, flexible and modular development of programs or projects, and ongoing projectized
management of operation and maintenance (O&M) through smart utilization of value and knowledge
created on programs or projects. This is also the rationale for certifying mission-performer project
professionals based on P2M.
It should be noted that this grand vision does note negate delivery-focused project management
that readers with less experience should perform day to day; owing to the modular nature of P2M,
those readers can focus on Part 1, 2 and 4. Part 4 alone offers many elements of project
management that have either not been given or are dealt with briefly in the existing project
management bodies of knowledge.

l Japan’s Certification System for Project Professionals
Project professionals should invariably possess competent professional capability backed by sound
knowledge, practical experience and attitude. Entrance to project professionals is learning a systematic
body of relevant knowledge, which is a prerequisite for becoming a specialist. It, however, is not the
whole picture. Defining a problem, breaking it down into tasks, designing how to implement tasks and
coordinating and controlling inter-related activities to meet project objectives requires in-hand, practical
experience. Moreover, project professionals are responsible for their professional performance toward the
society in addition to project stakeholders and abide by ethical codes.
Japan’s Project Management Certification Center, an NPO, started certification in 2002. On the
entrance level, the Project Management Specialist (PMS) certificate is granted to those who have
demonstrated the mastery of the knowledge pursuant to P2M. The intermediate level is the Project
Manager Registered (PMR), which requires higher competent capability and practical experience record to
be qualified as such. The highest level is the Program Management Architect (PMA) characteristic of
P2M. PMR is more or less equivalent to certified project manger qualifications according to the
preceding qualifications systems in the world while PMA is a unique certificate for program management.
For these two certificates, holding the PMS qualification is a prerequisite.

Abbreviation

Name Qualification for Test, Effective period, Test type Level
PMS
PM Specialist
Project Management
Specialist
Paper examination, renewal required every 5 years, Primary

PMR
Project Manager
Project Management
Registered

PMS + PM experience in at least one project, renewal
required every 5 years, thesis + interview
Practical

PMA
PM Architect
Project Management
Architect
PMS + experience in at least three projects, renewal
required every 5 years, thesis + interview
High
Figure 1-3: Japanese Project Management Certification Systems
The introduction of the certification system is expected to bring the following positive effects:


Part 1 Page 9
Ÿ The qualification of PMS will accelerate the promotion of P2M education and learning of
competent project management capability.
Ÿ The qualification of PMR will increase the chance for project managers to be socially
recognized and enhance their employability.
Ÿ The qualification of PMA will increase the chance for revitalization or innovation through the
re-creation of projectized businesses and public undertakings.
Ÿ The certification system will significantly improve the competence of project professionals to
deal with complex issues, both in the private and public sectors.
l Social Changes and Project Management
Changes in social environments create chances to innovate the mechanisms or systems that underlie
societies. Innovation can be a threat if no measures are taken for it, but adequate actions would produce
chances for growth. Patterns to provoke such proactive actions are expressed as visions or strategies and
their context depends on profound insight of top persons such as politicians, top executives and
entrepreneurs. Insight signifies the interpretation of the total picture of complex issues and right

orientation to deal with such and is a source to give birth to future values.
However, without project professionals, the context of strategy generated from the insight of such top
persons cannot be organically understood, or cannot be molded as a project to achieve given mission and
objectives. For example, launching of new business, business model structuring, development of new
products, scheming project plans, plant construction, M&A, and organizational innovation or restructuring
all of these are projects with a mission and objectives to be attained and need the competent capability of
project managers.
These projects may be independent from each other, however, quite a few of them are interrelated as a
complex project. Quite often, Customer Relationship Management (CRM) projects for enhanced response
to customers with the 3S factors i.e., speed, service and satisfaction are launched, coupled with the Supply
Chain Management (SCM) projects pursuing most reasonable, cost-effective business logistics. In the
zero-emission operation policy triggered by the Law for Promotion of Utilization of Recyclable Resources,
the total cycle of product development, design, manufacturing, and facility decommissioning are dealt with
as a once-through project.
An organization embraces both operation type activities that are characterized by repetitive business
activities producing stable returns or client satisfaction utilizing existing production facilities, infrastructure
or service systems created through projects, and projects that are intended to add new value to an
organization through adding new production facilities, commercial or public service systems, social
infrastructure, IT solutions or new business models, which are triggered by organizational recognition that
existing system are unable to cope effectively with market changes and no longer guarantee continuing
returns or client satisfaction or lack of proactive project investment would leave the organization behind
from competition. The operation type activity has to date accounted for 90 percent of the activities of
business firms in general in Japan. However, a trend is that the share of project activities is increasing
recently, there emerge companies that projectized businesses are a majority. For instance, in engineering
and construction companies, solution (or in many companies, called services) divisions of IT industry and
research institutes, since projects are exactly sources of their businesses, projectized operations are
common. They manage their organizations and resources to most suitably fit operations of projects and
their business systems are tailored for project type business running. In the current, drastically changing
social environments, in order to stay in business or to continue to be a reliable and efficient public service
provider, private and public enterprises should recognize the pressing need for “management by project” in

which all echelons of enterprises have project mindset and produce and implement projects to pursue
changes for the better. P2M finds its value where the guide is smartly used as a change agent and where
project professionals certified through the mastery of P2M play as a pilot for changes.


Drastic social changes Strategies and visions

Increase in innovation themes

Larger share of projectized business
business

Ample supply of project professionals
professionals
expert human resource

Increase in future value



Figure 1-4: Corporate Innovation vs. Supply of Project Professionals


Part 1 Page 10
Ÿ Social changes invite chances for creation of strategic projects for changes based on sharp
insights and visions.
Ÿ Projects include launching of new business, business model structuring, development of new
products, plant construction, M&A, and organizational innovation or restructuring.
Ÿ Projects are undertakings pursuing future value and are either independent or interrelated.
Ÿ Management by project, or projectized operation of enterprises for innovation require

mission-performer project professionals.

Case u Construction of a New Business Model
In the environment where the world is connected real-time through the Internet, technological information
exchange on some electronic parts is conducted using CAE/CAD/CAM on the global standard. A
high-performing automobile company demonstrates its cost competitiveness by procurement using an
Internet marketplace. Many agile top executives foresaw an economic advantage of network technology
and smartly utilize it for innovative business models. The success of such companies depends on
availability of smart project professionals.


Part 1 Page 11
Chapter 2 Unique Design and Structure of P2M
n Use of The P2M Template For Efficient Mastery of CBB
P2M is intended to facilitate readers to efficiently acquire the Capability Building Baseline (CBB). In
CBB, knowledge, experience, practice and norm for project management are as sources of intended
competent project management capability, which includes both tacit and implicit factors. The former can
be acquired through learning or is more or less knowledge based, but the latter is related to judgment ability
backed by practical experience and is thus hard to master for inexperienced project management
practitioners. It is essential to transfer the know-how and wisdom of experienced project mangers to those
inexperienced in as much a categorized format as possible.
Generally, experienced project mangers intuitively design the most efficient plans, work procedures and
have a horse sense of predicting problems. P2M has tried to decipher such “implicit best practices” into
visible format and express them in the form of P2M template (note: that template in this context is not a
standard format for some actions or reporting but refers to standard practice patterns).


Practice Guidelines

Objectives Processes Results

Knowledge and Information Base

Figure 1-5: P2M Template Structure
n Use of “Practice Frame” for Acquiring Judgment Capability
Where he or she detects a symptom of unusual phenomenon in project work, a project manager with
broad experience starts defining the problem occurring, works out alternatives for solving the problem
based on his/her past experience and lessons learned and predicts outcomes. One normally solves
problems using the Experiencing – Memorizing – Recalling – Applying Lessons Learned pattern. (refer
to Figure 1-6) . This structure of problem processing is called the “practice frame”. In P2M, eleven
segmnts of project management practice patterns which frequently occur in project and program
management, are identified and laid out as segments of project management in Part 4.


Experiencing-Memorizing-Recalling-Applying Experience, Norm, Competency
Combination of frames by individual judgment
Competent
capability
Segments of Project Management
Managtement
m
anagement

Hypothesis, analogy, deduction


Figure 1-6: Structure of Judgment Capability
Whereas the eleven segments of project management as standard patterns to manage individual project
objects is called "practice frames," the totality thereof or the complex utilization of individual practice
frames is labeled as "total practice framework." In P2M, trend charts, layer charts, flow charts and
fishbone charts, among others, are frequently used to expand applicability.

To put competent capability in actual use, soft thinking or zero-based, broad-spectrum thinking is
required to freely combining all available intellectual or practical assets. P2M has tried to formulate soft
thinking into the practice framework, not confining itself to the traditional coverage and Definition of
program and project management Definitions as its mission is to help realize changes and innovations. In
this context, P2M offer the following characteristics:

(1) Applicability deduced from practical experience
(2) Reflection of Japanese cultural, structural and industrial strength
(3) Avoidance of too meticulous Definitions and practices, thus providing leeway for case-to-case
applications
(4) Setting of rules to utilize human intelligence and IT potentials
(5) Emphasis of total thinking rather than segmentation and precise combination of management elements
n Competent Capability of Project Management
As a simple example of combination of frames, suppose that a delivery is slipped in a project. In this

Part 1 Page 12
case, what frame should be used for problem solution? A delay in the delivery will increase cost risk and
cause client complaint or dissatisfaction. Sponsors also may complain. The project objectives must be
met. Proper information and data should be obtained to make a quick and proper decision. Then a
measure should be worked out to address this complex issue by combining three management frames of
risk, relationships and objectives out of the eleven segments of projects management.
In P2M, these steps and procedures are described in the template with the necessary pieces of knowledge
provided as a package.
[11 Segments of Project Management]
(1) Project Strategy Management
(2) Project Finance Management
(3) Project Systems Management
(4) Project Organization Management
(5) Project Objectives Management
(6) Project Resources Management

(7) Project Risk Management
(8) Information Technology Management
(9) Project Relationships management
(10) Value Management
(11) Project Communications Management
n Program Management
As in project management, program management solves issues by combining the segments of project
management. However, since a program consists of multiple projects interrelated to each other under a
program, it features a double layer of management, viz., management of component projects and total
management of the program focusing on the optimum integration of projects. Program management
embraces the following four fundamentals and six features of integrative management:

[Fundamental Elements of Program Management]
(1) Mission Definition of the holistic mission of the program
(2) Architecture Structure interlinking projects
(3) Community Virtual space for integration of intellectual project professionals
(4) Assessment Assessment of program value conceived, being achieved and actually
realized
[Integrative Management – Six Features of Program Management]
(1) Profiling
(2) Strategy
(3) Architecture
(4) Platform
(5) Program Life Cycle
(6) Key Success Factors

n Underling Concept, Orientation and Standard Approaches
As in project management, frames of project management are utilized. In both, project management and
program management, basic concept, orientation and standard approaches are provided in the layers of (1)
Definition, (2) basis attributes, and (3) common view.

Project Management Program Management
Definition
Value creative undertaking based on a
specific mission
Value creating undertaking based on a holistic
mission
Basic Attributes Uniqueness, temporary nature, uncertainty
Multi-facets, scalability, complexity,
uncertainty
Common view Systems approach
Project life cycle
Project community
Project stakeholders
Use of management skills
Program mission
Program value
Program community
Program architecture
Use of pro gram integration management skill


Part 1 Page 13

Figure 1-7: Project Management vs. Program Management
In summary, P2M is designed as follows:

Ÿ Templates are provided for ready retrieval of standard practice patterns.
Ÿ Standard frames are built on industry lessons learned accumulated through the Experiencing –
Memorizing – Recalling – Applying cycle, which help acquire judgment capability.

Ÿ P2M allows project professionals build professional competencies by repeating deduction,
prediction and application along the standard frameworks provided.
Ÿ Cases in P2M facilitate simulated learning.


Part 1 Page 14
Chapter 3 Strategic Use of P2M- based Project Management
n Application Areas
Project management is even applied in daily lives, such as travel plans, school festivals, local festivals,
concerts, social services activities and all sorts of events. Project management is increasingly deployed in
ordinary business firms, introduced in colleges and government offices. Recent applications cover
government policies, public services, corporate innovation, business model development, product
development and education reform.
Project management application areas are largely categorized into the following groups by way of
illustration:

Social infrastructure projects Energy systems, environmental preservation, civil infrastructures,
transportation systems, defense systems, urban development,
regional development, national industrialization programs, trunk
public information systems
Engineering projects Engineering-procurement-construction of production plants and
facilities, commercial facilities, consulting services
Information infrastructure projects IT-based solutions, systems integration, software development,
information networks, e-businesses
Management innovation and
reform projects Management reform, restructuring, reengineering, mergers and
acquisitions of enterprises
New business creation Research and development, creation of new business, creation of
new business models, venture incubation, partnership development
Government initiatives ODA planning and management, technology transfer, international

development consortium
Innovation of manufacturing system Automation, AI application systems, CIM, virtual factories

n Shift from Projects to Programs
As seen in the above generic application areas of project management, a salient trend is that generally
projects are evolving to be more sophisticated in complexity and mission and be larger in investment costs
and resource utilization volumes, and are implemented in increasing uncertainty due to the rapid technical
innovation and market changes. Yet, the traditional project management is used on projects of all sizes
from hundreds of thousands to billions dollars. Apart from investment costs, many of contemporary
projects face high uncertainty. For instance, the development of leading-edge bio technology or electronic
technology involves many uncertainty factors to overcome, which makes such development projects risky
and traditional project management can contribute very little to raising a success probability. Senior
management of corporations may mandate realizing a scheme for materials procurement on a global scale,
developing a state-of-the-art management information systems coupling ERP, SCM and CRM systems, and
carrying out organizational structure innovation all at the same time to timely respond to the so-called
service economy. In this reality, principles and methods of the traditional project management are valid in
developing detailed plans for projects and control the implementation of the plans but are not as effective to
guide the mission and strategy formulation of projects and to manage interrelated component projects as an
organic total program. Here comes the importance of program management.
For program management, P2M first elaborates the concept and features of program management that
can rarely be found in an integrated manner in the existing literature, and proposes a modular approach to a
program in which component projects are structured to be modular for enabling combination or contraction,
if warranted, commensurate with changes in the program environment and frames of project management
can apply to component projects, thereby the strategy side and the management controls side of program
management balance.

Figure 1-8 indicates that the complementary nature of project and program management and the frame
elements of project management support both project and program management.

Part 1 Page 15

Complicated Requirements
Variable Environment
Wider Applicability

Program
Program management
Group of Projects
Project management
Integration management
Segments of Project Management


Figure 1-8: Relationship between Program and Project

Part 1 Page 16

Case u A New Target of Project Management
We are in the era where virtual enterprises perform activities on networks across the borders without time
constraints. P2M is expected to support corporate planning and state policy-making for the next
generation to accommodate futuristic business transactions and public services. Administrative reform
and one-stop public services that citizens desire, demand the integration, as a program, of traditional
discrete projects of national competitiveness strategy formulation, rational legal system, e-government
utilities, recycling promotion system, technology development structure, to mention a few. Chances are
that the value of public agencies is assessed against alignment to this global trend.

Case u Promotion of Corporate Innovation Project
The percentage of knowledge, information and service industries of GNP in industrialized countries has
reached as high as 60 to 80 percent. In these growth industries, information and knowledge resources that

satisfy customers are valued higher rather than physical resources, and many competitiveness enhancement
projects run.
On the other hand, manufacturing enterprises are promoting various innovation projects for survival as a
program, such as a restructuring project, professional development project for selected few high-performer
employees (departure form equal education opportunity characteristic of Japanese corporations),
competency based employee appraisal, downsizing (rightsizing) project to withdraw from unprofitable
business lines, quick response as core customer services using IT systems, and business process
reengineering.
In both cases, whether project (program) management is smartly utilized or not should influence corporate
success.


Part 1 Page 17
Chapter 4 Project Management Tower – P2M Tower
The “Project Management Tower" in Figure 1-9 shows the Overview of P2M as PMI

uses the
abbreviation “PMBOK

to popularize its body of project management knowledge and IPMA depicts the
overview of its competency base , ICB, in a “Sunflower” format.
I. Project Management Entry of P2M describes how to make a first step as a professional. II. Project
Management explains the basic Definition and framework of project management. III. Program
Management introduces program management that organically combines multiple projects. IV. Project
Segment Management offers 11segments of project management. Project management segments are used
in a standalone or combined manner for individual tasks and challenges of project management and
program management.


Entry

Project Management
1) Definition, Basic Attributes, Frames
2) Project Management Common Views
3) Integration Management
4) Project Management Segments
5) Integrative Management Skills
Program Management
1) Definition, Basic Attributes, Fames
2) Program Platform
3) Profiling Management
4) Program Strategy Management
5) Architecture Management
6) Platform Management
7) Program Lifecycle Management
8)

Value Management

Project Strategy Management
Project Segment Management
Project Objectives Management
Project Risk Management
Project Relationships Management
Project Systems Management
Project Finance Management
Project Organization Management
Project Resources Management
Information Technology Management

Value Management
Project Communications Management
I. Entry
II. Project Management
III. Program Management
IV. Frame Elements of
Project Management

Figure 1-9: P2M Project Management Tower


Ÿ P2M enhances project professionals’ competent capability to apply right knowledge and
wisdom embodied throughout P2M to project specific tasks and challenges
Ÿ A standard for structured knowledge base is important for the development of knowledge,
knowledge education and qualification of project professionals.
Ÿ This brochure is intended to be a structured guide for forming competent capability, not a
textbook that covers all about it.
Ÿ P2M is a project and program management guide first published in Japan. It will go through
continuing refinement with feedbacks from actual applications. Until it becomes prevalent,
familiarization

education is
provided through
dedicated
seminars and reference
literatures
will

Part 1 Page 18
be introduced.

[Bibliography]
[1] "Japanese Version of A Guide to Project Management Body of Knowledge”, Hiroshi Tanaka, PMP, et.
al, the Engineering Advancement Association of Japan, 1997, under license from the Project
Management Institute (PMI

)
[2] "ICB IPMA Competence Baseline" G. Caupin, H. Knoepfel, P. Morris, E. Motzel, O.
Pennenbaecker, International Project Management Association
[3] "Comprehensible Project Management" Katsuki Nishimura, Nippon Jitsugyo Publishing Co., Ltd.,
2000



Part 2 Page 19
Part II. Project Management
Chapter 1 The Project
Definition
A project refers to a value creation undertaking based on a specific mission, which is completed
in a given or agreed timeframe and under constraints, including resources and external
circumstances.
n Specific Mission
A specific mission means a fundamental state of achievement for that a project is created and that a
project is expected to attain. Project management starts with the interpretation of this mission into a set of
requirements and defines objectives, guidelines and polic ies, strategy, and essential action plans to meet
these. Then, a project sponsor(s), when satisfied with such project fundamentals, accepts the value of the
project and commits resources, including an investment fund.
n Basic Attributes of Projects
A project has three basic attributes: they are uniqueness of a project’s mission, temporary nature with the

starting and closing times set and uncertainty affecting a project, such as environmental changes and risks,
and on top of that value creating nature.


Project Basic attributes
Uniqueness
Temporary nature

Uncertainty
Value creating
undertaking

Figure 2-1: Definition of A Project


Part 2 Page 20
Chapter 2. Attributes of Projects
n Uniqueness
Uniqueness means the non-repetitive characteristics of projects. Even if some projects seem to
resemble each other, a project is never executed under exactly the same environment and context as with
others. Respective projects encourage pursuit of differentiation, new combination of approaches, novelty
and innovation. If some projects have seemingly same missions, each project can be unique so that it does
not attain the same results as it entails different requirement interpretation, constraints, context and a
project team. Uniqueness demands shifts of viewpoints, tailoring of approaches, and all in all wisdom.
n Temporary Nature
Temporary nature is characterized as such that each project has a defined start and end point. The start
time is clear as it is not only stated in the project schedule but a project team is organized based on the
project's mission and the team’s key persons are nominated. However, except for projects in the
hardware-oriented project industry, there are cases where the timing of the project completion is not
necessarily clear as in software development projects as debugging and or feature additions due to unclear

scope definition continue for an extended period. Defining conditions for project completion should be
carefully done.
n Uncertainty
Since projects are executed assuming specific conditions and situation, the achievement of their missions
is quite often affected by uncertainty. This uncertainty causes risks caused by indefinite information,
immature or unproven technology and unpredictable factors. In projects, these risks are overcome
proactively employing project manager’s and team members’ combined knowledge, judgment and
creativity. A salient feature of a project is a project team’s coordinated challenges to uncertainty.
n Value Creation
Projects embody insights of planners into given missions, which lead to the creation of new value
enriched by uniqueness, differentiation, novelty and innovation. In day to day life, business and public
scenes, one carries out some sort of value creating activities in pursuit of happiness, self-realization, profit,
welfare and so on. A value creating activity is defined as an activity to realize value to meet needs of
human being, industry and the society, which is carried out by one or more persons on the basis of
intellectual, physical and financial resources.
Routine manufacturing activities in production facilities are repetitive, whereas the development of new
products has a unique mission to satisfy customers’ specific needs and, if successful, enhances
corporations’ profitability. However, a mission is stated briefly as a desired state to reach and thus
signifies connotative requirements. It follows that it is essential for a program or project manger to clarify,
project goal, objectives and constraints that include, by way of illustration, basic functions, grade, design
features, production processes, production costs, time to market and marketing strategy. In summary, a
project can be defined as an undertaking embracing the following characteristics:

Ÿ A project is a value creating activity to meet a specific mission.
Ÿ When a project is successfully completed, it delivers novelty, differentiation and innovation on
its product, either in a physical or service form.
Ÿ A project has a temporary nature having its defined start and end times.
Ÿ A project has inevitable uncertainly factors due to its nature.

Part 2 Page 21
Chapter 3. Definition of Project Management
Definition
Project management is the total framework of practical professional capability to deliver a project
product meeting a given mission, by organizing a dedicated project team aware of due diligence,
effectively combining the most appropriate technical and managerial methods and techniques
and devising the most efficient and effective work breakdown and implementation routes.
n Due Diligence
Due diligence here means proper methods and procedures abiding by social expectations and ethical
standards in general and in conformity with applicable laws, standards, widely accepted practices and
where applicable, international standards that a sponsor(s) of a project, in carrying out a project, mandates
to the project team. In this way, the project is held accountable to the society as well.
n Efficiency
Efficiency refers to the ratio of output gained against resources mobilized; it signifies a physical
productivity indicator with production plants and manmade structures. Project management requires
procedures, knowledge and means to minimize irrationality, waste and inconsistency. In recent years, in
addition to physical productivity, intellectual productivity is proving important: agile use of market
information or production data, supply chain analysis, unique combination of technology elements, all
leading to value enhancement.
n Effectiveness
Effectiveness means an indicator of favorable overall effect brought about by projects and a level of
satisfaction of stakeholders who are directly or indirectly involved in a project. Effectiveness is also
evaluated in terms of benefit acquired against investment costs. Effectiveness depends on the quality of
project professionals. A project team is formed with expert professionals drawn from permanent
organizations and the team exists temporarily over the project period.


Project
Management
Due Diligence, Professional

Methods and Procedures
Practical
Capability to Acquire
Project Product(s)
Efficient Performance

Effective Performance

Dedicated
Team
Value
Creation


Figure 2-2: Definition of Project Management
The professional capability of project management is largely classified into the following three categories:
(1) Capability to translate a mission into concrete objectives and schematically design processes, major
work items and paths to attain these objectives.
(2) Capability to ensure the delivery of a project product through proper planning, management,
coordination and controls.
(3) Capability to ensure overall stakeholder satisfaction by coordinating a variety of and frequently
conflicting stakeholder interests.